Data released today showed that retail sales rose 0.5% in May and April’s data was revised higher. Analysts at Wells Fargo, point out upward revisions to prior months’ data, and a standout gain in control group sales, not only make this a solid report but also suggest consumer spending is on pace to have a solid Q2 gain.
“The gain in May sales was broad-based, with 11 of the 13 business categories seeing sales advance over the month. Only grocery stores and miscellaneous retailers sales retracted.”
“Motor vehicle and parts dealers helped lift the headline with a 0.7% rise in sales. This is consistent with May’s gain in vehicle sales to dealers, seen in a previous release, and with the renewed gain in consumers’ desire to buy a vehicle.”
“The stronger-than-expected gain and upward revision to April suggests some upside risk to our 2.9% call for Q2 consumption growth. After a volatile few months, consumption looks back on track.”
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